Carnegie and Rockefeller: Captains of Industry

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Carnegie and Rockefeller: Captains of Industry

Carnegie and Rockefeller: Captains of Industry

The Industrial Revolution started in the 1800’s birthing four men who would change the way of living forever. These men were either a Robber Baron, who became rich through ruthless business practices or a Captain of Industry, who were head of a successful business who used their money to help the community. Two leaders who stand out as Captains of Industry were Andrew Carnegie and John D. Rockefeller. Carnegie and Rockefeller were ingenious and industrious leaders who transformed the American economy with their business skills as well as their philanthropy.

Andrew Carnegie revolutionized the steel industry in America with is company the Carnegie Steel Company. Carnegie built plants around the country, using technology and methods that made manufacturing steel easier, faster and more productive. He introduced the idea of vertical integration. He bought railroad companies and iron mines. If he owned the rails and the mines, he could reduce his costs and produce cheaper steel. Carnegie owned the raw materials, ships and railroads for transporting the goods, and even coalfields to fuel the steel furnaces. To keep his workers vested in their jobs he used the profit sharing, plan which gave all of them a share of the company’s profits. Carnegie also established the “Gospel of Wealth”. He was the first business men to speak out and say the rich should contribute their wealth to society. Carnegie practiced his philosophy by dedicating the rest of his life to distributing the large fortune he had accumulated. He